SAN JOSE / Contrite Gonzales defends trash deal / Council censure likely, but he wants no further probe

Dave Murphy, Chronicle Staff Writer

Published
4:00 am PST, Sunday, December 11, 2005

Faced with a censure by the City Council and a vote-of-no-confidence petition drive, San Jose Mayor Ron Gonzales said Saturday that he would accept a censure but reiterated that he will not resign.

He also said he will oppose efforts to continue the investigation of his role in the Norcal Waste Systems scandal.

In his first Chronicle interview since investigator Chris Scott Graham of Dechert LLP issued his report critical of the mayor, Gonzales again apologized to both the council and residents. Graham's report Tuesday essentially said Gonzales had cut a deal in 2000 -- without telling the City Council -- that eventually ensured an $11.25 million pay increase for San Jose's garbage collectors.

Graham's investigation echoed what a Santa Clara County civil grand jury had reported in June. Although Gonzales had reacted angrily to the grand jury's findings, this time he was contrite.

He stressed, however, that he had no financial gain from his actions and that the main benefits of his deal were to give appropriate wages to Norcal workers while keeping garbage costs relatively low for residents, despite a rate increase.

"Our garbage rates are less than the average of other cities in Santa Clara County and the Bay Area," said the mayor, whose second and final term in the $105,000-a-year job expires at the end of 2006.

City Councilman Dave Cortese, who sent a letter Wednesday to Gonzales asking the mayor to resign, has begun a petition drive for residents to say they have no confidence in Gonzales. Cortese, a candidate to succeed Gonzales, said his group will gather signatures at 3 p.m. today at Valley Fair Mall, as well as collecting them online.

Cortese acknowledged Saturday that both the petition drive and the likely censure of Gonzales at Tuesday's City Council meeting have no legal weight, and he is unlikely to push for a recall because a special election would be so costly. Still, he wants to put pressure on his council colleagues to have Graham continue his investigation and issue subpoenas for anyone who will not cooperate.

"There is a great deal of concern that a council majority exists that will shut off the investigation Tuesday," Cortese said.

Gonzales, who was at a National League of Cities conference in North Carolina until Friday, said he will accept a council censure, but thinks extending the investigation will be a waste of time and money.

Pressure on Gonzales is coming from other places besides Cortese. Councilman Chuck Reed, who is also running for mayor, has reportedly suggested that the council try to oust the mayor, and a San Jose Mercury News editorial on Thursday called on Gonzales to resign.

The Santa Clara County district attorney is also considering whether any criminal investigation should take place and expects to make an announcement early this week.

June's grand jury report had said Gonzales concealed an October 2000 meeting he had with Norcal Waste officials. Four days after that meeting, the council approved an 11-year garbage contract.

The report said Gonzales violated the City Charter when he didn't tell the council that he promised Norcal he would make sure the city covered a future multimillion-dollar pay raise for garbage workers, even though that increase is not mentioned in the contract. A year ago, the council approved that boost, which cost $11.25 million, without knowing about the earlier deal.

When asked why he reacted angrily to the grand jury, but much more calmly this time, Gonzales said the grand jury report came across as more of a personal attack, and he responded more emotionally than he should have.

"When they came out and attacked me personally, I reacted personally," he said.